Having sold my family’s business at 54, officially retired at 56, and unretired nine months later, I’m approaching retirement longer than I worked. My spending increased in early retirement. Twenty-five years retired now, we’re living on about 35% of my average income during my working years. That does not include Social Security. That will increase when we move to a CCRC, but not by much. The biggest variables are eating out and trips. I expect that will decrease with age.
Our retirement expenditures remained roughly unchanged (100%) from pre-retirement for the first 5 years, although expenditures are now creeping higher due to recent inflation. Costs for travel and helping our adult kids replaced work, commuting, and college expenses. Expenditures as a percent of salary has been perhaps 70% as we saved quite a lot approaching retirement.
Youza! So, the day you retire you can live the rest of your life on 50% of what you earned the day before? If you earned a million a year, I get it, but let’s say it was more like $80,000.
Having sold my family’s business at 54, officially retired at 56, and unretired nine months later, I’m approaching retirement longer than I worked. My spending increased in early retirement. Twenty-five years retired now, we’re living on about 35% of my average income during my working years. That does not include Social Security. That will increase when we move to a CCRC, but not by much. The biggest variables are eating out and trips. I expect that will decrease with age.
Our retirement expenditures remained roughly unchanged (100%) from pre-retirement for the first 5 years, although expenditures are now creeping higher due to recent inflation. Costs for travel and helping our adult kids replaced work, commuting, and college expenses.
Expenditures as a percent of salary has been perhaps 70% as we saved quite a lot approaching retirement.
About 50%
Youza! So, the day you retire you can live the rest of your life on 50% of what you earned the day before? If you earned a million a year, I get it, but let’s say it was more like $80,000.
Yes. Adjusted for inflation annually, of course. $80,000 is much more than we’d need.